January 12, 2024
Global Atomic Corp. (TSX:GLO, BUY, C$5.20 target, David A. Talbot) provided an update on its Dasa uranium project in Niger. The company has completed the previously announced third offtake agreement for the sale of an additional 700k lbs annually, translating to 3.5M lbs over the initial five years of production. This satisfied the pre-sales requirement for the debt to be issued by the banking syndicate to fund the construction of the uranium processing plant. Additionally, work on the Feasibility Study update is nearing completion and we anticipate a considerable increase in mineable reserves in the new mine plan, along with higher uranium prices (US$35/lb used in the 2021 FS), that should result in Phase 1 production expanding to well beyond the 44M lbs currently forecast in the 2021 FS. This should provide considerable improvement to already very robust project economics. Global continues to be the top-performing uranium developer and we believe that despite the coup of mid-2023, Niger is likely to be a key source of uranium for the Western market. Read more
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Global Atomic Corp. – TSX:GLO – 1,2,3
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